Working Paper

Some not so unpleasant monetarist arithmetic


Abstract: This paper analyzes the quantitative significance of Sargent and Wallace's (1981) \"Some Unpleasant Monetarist Arithmetic\" in a model that is parameterized to correspond with U.S. data. The major result is that the monetarist arithmetic is not overly unpleasant and that the nominal side of the economy is not very sensitive to whether money growth does or does not respond to government debt.

Keywords: Inflation (Finance); Monetary policy;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Working Paper

Publication Date: 1995

Number: 95-02